Disney is removing a number of titles from its Disney+ streaming services in a bid to avoid paying residual fees for programs that are no longer popular.
This includes a number of programs from the original Disney+ slate that debuted in late 2019, but have since been cancelled and remain on the streaming service.
Chief Financial Officer Christine McCarthy said on an earnings call last week that Disney will write off up to A$2.7 billion in programming during 2023 by stripping languid content from the streaming service.
McCarthy said the changes will occur this quarter; according to Bloomberg, insiders have already started prepared cull lists, with programs to begin disappearing from the service this week.
Operating income from the company’s linear TV segment, including ESPN and the Disney Channel fell by 35 per cent year-on-year during the most recent quarter, fast-tracking the company’s plans to make streaming profitable.
The company aims to make Disney+ profitable by the end of its next fiscal year, ending September 2024.
In addition, CEO Bob Iger has signalled plans to reduce spend on original programming across the entire company by A$4.5 billion this year alone.
